High Street links success for L&G

Thursday 24 January 2002 00:00 BST

LIFE assurer Legal & General has reported record new business figures after reaping the benefit from a string of High Street alliances.

L&G said individual life and pensions sales grew nearly 50% in the last quarter following distribution deals with Barclays and Alliance & Leicester. That took individual business figures for the year 24% higher to £457m and provided cheer for chief executive David Prosser.

He said: '2001 has been a year of real progress for Legal & General with record new business volumes both for the year and for the fourth quarter.'

Across the group, Legal & General said new business sales had risen 27% to £801m during the year - a figure in line with market expectations. Total UK business was 32% higher at £710m, although international sales were 3% lower at £91m.

The UK's third largest insurer forecast that it would see the full benefit of its distribution alliances filter through this year.

L&G said: 'Accordingly, we anticipate achieving further market share growth during the year ahead.'

The strategic alliances have included extending a tie-up with Barclays to offer investment and life protection products to eight million Barclaycard customers.

Alliance & Leicester has also been selling L&G's products through its branches since the middle of last year.

The latest figures from L&G show that new annual premium business grew 60% to £123m last year following the introduction of stakeholder pensions.

More than 43,000 employers, covering 1.5m potential scheme members, have designated the company as their stakeholder provider.

L&G said: 'We believe this represents around 14% of total designations and places Legal & General in a strong position to meet our target market share.'